Trade setup for May 29: Can NIFTY50 close above 24,000 on Friday? Check details

Indian benchmark indices are expected to open on a positive note following an overnight global market rally. The de-escalation measures and efforts made by the US and Iran will be largely welcomed by investors on Friday as crude oil prices drop to a 5-week low level

Brent crude oil prices remained steady near $92 per barrel, dropping 11% this week. The US and Iran have reportedly made “a lot of progress” to reach a deal to end the war. However, President Trump is yet to sign the deal.

The US markets continued their record run, led by a rally in tech stocks. The Dow Jones closed almost flat, with a 0.05% gain. Meanwhile, the NASDAQ and S&P 500 rose 0.5% and 0.9%, respectively, to hit fresh record high levels on Thursday.

Taking cues from overnight gains in the US and easing tensions in the Middle East, the Asian markets opened in the green across the board on Friday morning. Japan's Nikkei and Korea’s Kospi jumped 1.7% and 2.3%, followed by a 0.4% rise in Hong Kong’s Hang Seng.

GIFT NIFTY futures indicate a positive start for NIFTY50 on Friday, owing to positive global market cues. The sharp drop in crude oil prices, US treasury bond yields and the dollar index will continue to improve the sentiment for the Indian markets.

NIFTY50 chart

The NIFTY50 gave up partial gains this week, closing flat on Wednesday. The index continues to face resistance at the 50-day EMA of 24,000. However, it continues to defend the 20-EMA level of 23,833 as support. The range-bound structure can only be broken if the index closes above 24,000 or below 23,800 on Friday.

NIFTY OI analysis

The options data for the coming weekly expiry on June 2 indicates a strong resistance at the 24,000 level, with the highest open interest on the call side of the strike price. Similarly, 23,000 puts hold the highest open interest, indicating a strong support on the downside.

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